Data in the Path

Question 1

To ensure effective utilization and drive better decision-making

Answer 1

Organizations should strategically incorporate FinOps data into the existing processes, dashboards, and tools used by each persona in their daily operations.

Question 2

These are some of the most important tools in building a collaborative FinOps practice.

Answer 2

The reports and dashboards you create

Question 3

This provides an opportunity to educate about FinOps and continue the work of breaking down barriers between discipline silos within the organization.

Answer 3

putting data into the path of each persona

Question 4

Getting FinOps data into finance systems allows your existing finance processes to work with your summarized cloud spend,

Answer 4

and it reduces friction with finance teams who have well-established reporting and auditing requirements from which they typically cannot deviate.

Question 5

This reinforces the incorrect perception that FinOps is somehow disconnected from the rest of the business

Answer 5

Separating FinOps data from other business data

Question 6

Leadership and executive reports should also include FinOps data showing cloud spend data in relation to existing business metrics

Answer 6

Leadership and executive reports should also include FinOps data showing cloud spend data in relation to existing business metrics

Question 7

Last, but arguably most important, we strongly recommend you work on getting FinOps data into the path of your engineers

Answer 7

Last, but arguably most important, we strongly recommend you work on getting FinOps data into the path of your engineers

Question 8

The Iron Triangle

Answer 8

People often say, “Good, fast, or cheap – Pick two” because it is difficult to optimize for all three elements at the same time in a single system.

Question 9

Often trade-offs occur retrospectively after costs come in. How can you avoid this?

Answer 9

Make trade-of decisions early in the pipeline

Question 10

Ideally trade-offs occur in the following ways

Answer 10

Early in the pipeline
Drive value-based decisions

Question 11

as trade-off decisions become more commonplace at your organization, other Core Personas you work with will

Answer 11

come to expect these conversations.

Question 12

example, knowing the organization is driving toward increased speed, you can

Answer 12

Support Core Personas to allocate resources and time accordingly. Then, if costs go up, you can confidently discuss the trade-off decisions made.

Question 13

The nirvana state of FinOps is when

Answer 13

everyone can make collaborative, data-driven decisions that create value

Question 14

Ensure Core Personas at your organization have

Answer 14

necessary data that is accessible and actionable. If the data they require is not readily available, work together to understand their needs and develop strategies for collecting, analyzing, and presenting information in a meaningful way

Question 15

a system of profit maximization based on objective measurements of how well your organization is performing against not only its FinOps goals but also as a business in the market

Answer 15

Cloud Unit Economics

Question 16

By calculating the difference between marginal cost and marginal revenue, you can

Answer 16

determine where cloud operations break even and begin to generate a profit

Question 17

TF: Unit economics should be applied at one level throughout the organization, using one input and level of detail.

Answer 17

False: Unit economics should be applied at various levels throughout the organization, using different inputs and levels of detail.

Question 18

Simple definition for unit-metric

Answer 18

direct revenues or costs, associated with a particular business model, that are specifically expressed on a per-unit basis

Question 19

Unit metric examples

Answer 19

For a customer-facing application, that unit might be a user or customer subscription; for an e-commerce platform, it might be a transaction; and for an airline, it might be cost per available seat mile.

Question 20

In every cloud unit economics calculation, there is a numerator and denominator.

Answer 20

You’re taking something (generally an activity or output metric) and dividing it by something else (generally a portion of cloud spend) to come up with a unit metric value.